GAKUJO Co., Ltd. (2301) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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GAKUJO Co., Ltd.

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Why is GAKUJO Co., Ltd. ?

High Management Efficiency with a high ROE of 12.65%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 11.70% of over the last 5 years

Negative results in Jan 26

ROCE(HY) Lowest at 11.92%
NET SALES(Q) Lowest at JPY 1,368.97 MM
OPERATING PROFIT(Q) Lowest at JPY -606.36 MM

With ROE of 11.81%, it has a fair valuation with a 1.85 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.99%, its profits have fallen by -16.7%

Below par performance in long term as well as near term

Along with generating -10.99% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GAKUJO Co., Ltd. should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GAKUJO Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GAKUJO Co., Ltd.

-12.38%

-0.60

23.25%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.40%

EBIT Growth (5y)

11.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.75

Tax Ratio

27.88%

Dividend Payout Ratio

47.87%

Pledged Shares

Institutional Holding

ROCE (avg)

26.54%

ROE (avg)

12.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.85

EV to EBIT

10.23

EV to EBITDA

8.86

EV to Capital Employed

2.31

EV to Sales

1.91

PEG Ratio

Dividend Yield

ROCE (Latest)

22.60%

ROE (Latest)

11.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 137.93 times

-16What is not working for the Company

ROCE(HY)

Lowest at 11.92%

NET SALES(Q)

Lowest at JPY 1,368.97 MM

OPERATING PROFIT(Q)

Lowest at JPY -606.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -44.29 %

PRE-TAX PROFIT(Q)

Lowest at JPY -613.66 MM

NET PROFIT(Q)

Lowest at JPY -426.71 MM

EPS(Q)

Lowest at JPY -31.8

Here's what is working for GAKUJO Co., Ltd.

Inventory Turnover Ratio

Highest at 137.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 86.44 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for GAKUJO Co., Ltd.

Pre-Tax Profit

At JPY -613.66 MM has Fallen at -118.8%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -426.71 MM has Fallen at -133.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 1,368.97 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -606.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -44.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -613.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -426.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -31.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)